Operating Leases (Tables)

3 Months Ended

Mar. 31, 2020

Lessee, Lease, Description [Line Items]

Lease, Cost [Table Text Block]

The following table summarizes the lease income as well as lease costs and sublease income for the three months ended March 31, 2020 and 2019 (in thousands):

		Three Months Ended March 31,
	Classification	2020			2019
Rental revenues
Operating leases (1)	Rental revenue	$	137,089		$	134,569
Sublease income - operating ground leases (2)	Rental revenue	$	(2,046	)	$	5,723
Lease cost
Operating ground lease cost	Property operating expense	$	6,217		$	5,938
Operating office lease cost	General and administrative expense	$	226		$	230

Lessee, Operating Lease, Disclosure [Table Text Block]

Operating Leases

The Company’s real estate investments are leased under operating leases. As described in Note 2, the Company adopted Topic 842 on January 1, 2019 and elected to not reassess its prior conclusions about lease classification. Accordingly, these lease arrangements continue to be classified as operating leases. In addition to its lessor arrangements on its real estate investments, as of March 31, 2020 and December 31, 2019, the Company was lessee in 58 operating ground leases as well as lessee in an operating lease of its executive office. The Company's tenants, who are generally sub-tenants under these ground leases, are responsible for paying the rent under these ground leases. In the event the tenant fails to pay the ground lease rent, the Company would be primarily responsible for the payment, assuming the Company does not sell or re-tenant the property.

The following table summarizes the lease income as well as lease costs and sublease income for the three months ended March 31, 2020 and 2019 (in thousands):

		Three Months Ended March 31,
	Classification	2020			2019
Rental revenues
Operating leases (1)	Rental revenue	$	137,089		$	134,569
Sublease income - operating ground leases (2)	Rental revenue	$	(2,046	)	$	5,723
Lease cost
Operating ground lease cost	Property operating expense	$	6,217		$	5,938
Operating office lease cost	General and administrative expense	$	226		$	230

(1) During the three months ended March 31, 2020, the Company wrote-off straight-line receivables of $4.5 million to straight-line rental revenue classified in rental revenue in the accompanying consolidated statements of income and comprehensive income.

(2) During the three months ended March 31, 2020, the Company wrote-off sub-lessor ground lease straight-line receivables $8.0 million to straight-line rental revenue classified in rental revenue in the accompanying consolidated statements of income and comprehensive income. This write-off resulted in a net reduction to total rental revenue related to sublease income on operating ground leases for the three months ended March 31, 2020.